A federal judge has struck down President Donald Trump’s executive order that froze permitting for wind energy projects on federal lands and waters, calling the move unlawful.

The ruling lifts a nationwide pause that states and developers said jeopardized investments, jobs, and clean power targets across the United States.

US judge overturns Trump freeze on wind permits

• Court vacates order freezing federal wind permits nationwide.
• 17 states and DC sued, arguing economic and climate harms.
• Judge says policy shift lacked reasoned explanation under law.

What the court decided

On Monday, Judge Patti B. Saris of the US District Court for the District of Massachusetts vacated Trump’s 20 January executive order that halted leasing and permitting for wind projects, finding it “arbitrary and capricious” and contrary to law.

According to her decision, federal agencies failed to “provide a reasoned explanation for the change” when reversing course on wind approvals.

A prior ruling by Judge William Young had allowed the case to proceed against US Interior Secretary Doug Burgum under the Administrative Procedure Act, while dismissing claims against Trump and other cabinet officials.

The states’ constitutional claims were not allowed to move forward.

Who sued and why it matters

A coalition of 17 states and Washington DC, led by New York Attorney General Letitia James, challenged the order.

The group argued the administration lacked authority to halt permitting and that the freeze threatened state economies, energy mixes, public health, and climate goals.

• Arizona
• California
• Colorado
• Connecticut
• Delaware
• Illinois
• Maine
• Maryland
• Massachusetts
• Michigan
• Minnesota
• New Jersey
• New Mexico
• New York
• Oregon
• Rhode Island
• Washington state
• Washington DC

“We won our lawsuit and stopped the Trump administration from blocking an array of new wind energy projects,” James said, calling the ruling “a big victory in our fight to keep tackling the climate crisis.”

Massachusetts Attorney General Andrea Joy Campbell said the decision protects “hundreds of millions of dollars” the state has invested in offshore wind.

Project impacts and industry context

The lawsuit was sparked in part by a stop work order for Empire Wind 1, a major offshore project planned off New York.

The Interior Department later allowed that project to resume, but the broader permit freeze remained in place, according to court filings.

Empire Wind is designed to power 500,000 homes and is expected to be fully operational by the end of 2027, according to the project’s website.

Wind is the nation’s largest source of renewable electricity, providing about 10% of US generation, according to the American Clean Power Association.

Industry advocates said the ruling allows projects to be judged on their merits. Wind is “one of the most cost-effective ways to generate power,” said Marguerite Wells of the Alliance for Clean Energy New York.

Kit Kennedy of the Natural Resources Defense Council said the permit freeze had been “a devastating blow to workers, electricity customers, and the reliability of the power grid.”

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Consumer caution, shifting inflation expectations, political brinkmanship, and corporate resilience set the tone across Europe today.

UK spending data shows households tightening their belts, even as the Bank of England signals modest relief ahead from Reeves’ budget.

In France, Prime Minister Lecornu faces a knife-edge vote that could upend the 2026 social security plan.

And in the corporate world, Trafigura’s hefty dividend hike underscores how diversified trading houses are navigating a still-uneven economic landscape.

UK consumers pull back in November

According to new data from Barclays, UK households cut back on card spending in November, down about 1.1% compared to last year.

That’s actually the biggest drop since early 2021. Most of the pullback came from non-essentials like eating out, buying clothes, going to pubs, and entertainment, which pretty much signals that people are feeling cautious right now.

Pre-budget uncertainty and the ongoing squeeze from high living costs aren’t helping either.

Spending on essentials, like groceries, did grow a bit, but not enough to make up for the slowdown elsewhere. Even Black Friday, which usually gives retailers a solid bump, didn’t do much this time.

According to the BRC-KPMG numbers, retail sales in November grew only 1.4% overall, far below what many hoped for.

BoE sees budget easing inflation

The Bank of England says Chancellor Rachel Reeves’ new budget could knock about 0.4 to 0.5 percentage points off annual inflation for a year starting in Q2 2026.

Deputy Governor Clare Lombardelli shared this early analysis while speaking to the Treasury Committee, explaining that the drop mainly comes from policies aimed at lowering household energy bills and freezing rail fares.

This lines up pretty closely with the Office for Budget Responsibility’s earlier forecast, which also predicted a 0.4-point inflation dip in 2026/27.

If things play out that way, it could help the BoE reach its 2% inflation target a bit sooner, especially with CPI still sitting around 3.6%.

Lombardelli said the impact is modest but definitely “in the right direction.”

Still, how consumers react will be a big factor in what the Bank decides to do at its upcoming December 18 rate meeting.

France braces for budget clash

French Prime Minister Sébastien Lecornu is heading into a high-stakes vote on Tuesday as the National Assembly decides the fate of the 2026 social security budget, the plan that covers everything from healthcare to pensions to welfare.

With no majority in parliament, he’s trying to win over the Socialists by promising more funding for hospitals and delaying Macron’s controversial 2023 pension reform until 2027.

But that strategy could backfire. Center-right allies, including figures close to Edouard Philippe, are already warning that Lecornu is being too soft on fiscal discipline.

Meanwhile, the big opposition blocs are lining up against the budget: the far-right National Rally with its 140 MPs, the far-left France Unbowed with 71, plus the ecologists and communists who together hold 55 seats.

Lecornu needs 288 votes, and he’s nowhere near that on paper.

If the budget fails, France could be staring at a €30 billion shortfall, the collapse of the main fiscal plan, and a messy fallback to 2025’s rollover measures.

Trafigura lifts dividends despite profit dip

Trafigura is raising its dividend payout by a big 50%, bringing total dividends for the year to $2.9 billion, even though net profit slipped 3% to $2.67 billion in the year ending September 30, 2025.

Considering last year’s profit collapse of 60%, this year’s dip looks far more manageable. EBITDA held steady at $8.2 billion, though group equity inched down to $16.2 billion.

The company booked $843 million in impairments, including a $341 million write-down on assets such as Nyrstar’s Australian smelter.

It also set aside $708.9 million for the Mongolia fraud case, pushing total fraud-related losses to around $1.2 billion.

On the trading side, oil was a strong performer with volumes jumping 10% to 6.6 million barrels per day, while metals trading slumped 16%.

CEO Richard Holtum highlighted the numbers as proof that Trafigura’s diversified model is helping it stay resilient in a tough environment.

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Famed investor Jim Cramer says he “salutes” DaviCVSd Joyner after CVS Health (NYSE: CVS) raised its profit guidance for 2026 – reinforcing the new management’s turnaround plan is starting to bear fruit.

In a recent segment of CNBC, he praised the company’s chief executive of reshaping the narrative around CVS, which, under the previous management, was mired in concerns of shoplifting, check-out inefficiencies, and competition from Amazon.

CVS shares are pushing higher following the financial update – and are now up some 80% versus the start of 2025.

Why is Jim Cramer bullish on CVS shares?

On Tuesday, the former hedge fund manager especially cheered Joyner’s decision to de-emphasise CVS Health’s traditional retail footprint, which has long been a drag on performance.

“He isn’t planted to the front of the store, which is almost infinitesimal in the new plan”, – Cramer explained.

Under the previous management, the company’s front-of-store segment was plagued by theft and declining sales, raising questions about whether it can compete with rivals like Walgreens or fend off Amazon’s encroachment.

But Joyner has neutralised those concerns, focusing instead on CVS’s strengths in health insurance and wellness – a seismic shift that Cramer believes enabled the firm to confidently raise its earnings guidance today.  

A healthy 3.39% dividend yield makes CVS stock all the more attractive to own for 2026.

CVS stock is benefiting from Joyner’s turnaround plan

According to Jim Cramer, Joyner has repositioned CVS as a healthcare powerhouse rather than a struggling retailer.

By focusing less on the checkout line and more on healthcare services, he’s guided the giant toward stronger earnings visibility.

CVS is now being valued for its insurance and wellness segments, which provide recurring revenue and growth opportunities. The transformation, Cramer argued, will trigger multiple expansions over time.

All in all, under Joyner’s leadership, CVS has evolved into a “first-class healthcare company, maybe the only one we have,” Cramer concluded.

Wall Street seems to agree with his bullish view. The consensus rating on CVS shares currently sits at “overweight” with the mean target of about $93, indicating potential upside of another 17% from here.

Technicals warrant investing in CVS Health

CVS now sees its full-year earnings coming in between $7.0 and $7.2 per share – decisively above $7.16 a share that analysts had forecast.

From a technical perspective as well, CVS stock looks attractive heading into 2026. The surge on Tuesday morning saw it break above its 50-day moving average (MA), signaling continued upward momentum in the near-term.

What’s also worth mentioning is that options data for the healthcare stock is also currently skewed to the upside, with an expected move to north of $87 in the first quarter of the coming year.

Taken together, both technicals and fundamentals suggest CVS shares are relatively inexpensive to own and will likely push higher from here in 2026.

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China is tightening access to Nvidia’s most advanced AI chips even as the US approves exports.

Microsoft is making a record $17.5B bet on India’s AI future, and Australia has imposed an unprecedented nationwide social media ban for teens.

Meanwhile, Bitcoin is surging ahead of the Fed’s decision, setting the stage for a volatile week across crypto and markets.

A glance at the major developments on Tuesday.

China tightens access to Nvidia chips

China is planning to tighten access to Nvidia’s top-tier H200 AI chips, even though President Donald Trump has given the green light to their export.

Under the new rules, Chinese buyers would have to obtain regulatory approval and demonstrate that local alternatives are not good enough.

Trump announced on Truth Social that exports to “approved customers” will go ahead, but only under certain national-security conditions and with a 25% fee paid to the US.

He said this followed talks with President Xi Jinping, who reacted positively.

The move marks a shift from the Biden-era restrictions that tried to limit China’s ability to develop AI with military applications.

At the same time, Beijing is doubling down on its own chip industry with subsidies and tighter checks on imports.

Nvidia, which has been lobbying for looser rules, already sells a scaled-down H20 chip in China, though some in Congress aren’t thrilled about that.

Microsoft unveils $17.5B India AI push

Microsoft just made a huge announcement: it’s committing $17.5 billion to India, its biggest investment in Asia to date, to ramp up AI, cloud infrastructure, and digital skills over the next four years.

CEO Satya Nadella shared the news after meeting Prime Minister Narendra Modi, laying out three main focus areas.

First, scale: Microsoft is expanding its data center footprint in Chennai, Hyderabad, and Pune to support India’s fast-growing demand for cloud and AI services.

Second, skills: the company plans to train 20 million people in AI by 2030, aiming to build one of the world’s largest pools of AI-ready talent.

And third, sovereignty: Microsoft wants to strengthen India’s digital independence with more localized, secure cloud systems.

This new pledge builds on an earlier $3 billion commitment, bringing Microsoft’s total planned investment in India to $20.5 billion, a clear signal as competition heats up with Google and others in India’s booming tech market.

Australia bans social media for teens

Australia has just rolled out a world first: a nationwide social media ban for anyone under 16.

As of December 10, teens can’t access platforms like TikTok, Instagram, Facebook, YouTube, Snapchat, basically all the major apps, once the clock hits midnight.

The rules are strict, too. Platforms now have to shut down existing underage accounts and stop new ones from being created, using “reasonable measures” to verify age. If they don’t, they could face fines of up to A$49.5 million (about $33 million).

Prime Minister Anthony Albanese framed the move as a way to shield kids from addictive algorithms and harmful content.

Many parents have welcomed the decision, but tech companies and free speech groups aren’t exactly cheering as they argue it’s overreach and sets a worrying precedent.

And it’s not without legal pushback. Some teenagers are taking the issue to Australia’s High Court, saying the ban violates the country’s implied freedom of political communication.

Bitcoin soars ahead of Fed decision

Bitcoin jumped nearly 5% on Tuesday, climbing to $94,284 as traders grew more optimistic ahead of the US Federal Reserve’s interest rate decision.

The rally pushed BTC as high as $94,616 during the day, with a low of $89,792, and trading volume topping $63 billion, a sign that confidence is flowing back into the market after recent pullbacks.

Analysts say the surge is being driven by expectations that the Fed will hold rates steady, growing hopes for more crypto-friendly policies under the Trump administration, and strong institutional demand.

Bitcoin ETFs alone saw about $2.1 billion in inflows last week.

Ethereum also rode the positive sentiment, rising 3.5% to $3,450, while the overall crypto market cap reached $3.2 trillion.

Still, volatility is very much in play as everyone waits to hear what Fed Chair Jerome Powell has to say next.

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US stocks are holding near flat as Wall Street awaits the Federal Reserve’s final policy decision of 2025.

The S&P 500 is essentially unchanged, while the Nasdaq edged up modestly and the Dow slipped on weakness in JPMorgan Chase after the bank issued sobering expense guidance for 2026.

Traders are pricing in an 87-88% probability of a quarter-point rate cut on Wednesday, but the real market mover may be what Fed Chair Jerome Powell says about future easing.

Ahead of the Fed decision, Tuesday’s JOLTS report revealed a sharp drop in hires that’s muddying the inflation-versus-growth calculus.

US stocks at a glance: Positioning before the Fed

The S&P 500 is trading in a narrow range near 6,840–6,860, up roughly 17% year to date, even after recent profit-taking.

The Nasdaq is holding steady while financials bear the brunt of selling pressure.

JPMorgan’s shares fell sharply after CCB CEO Marianne Lake warned that the bank expects 2026 expenses of $105 billion, roughly 9% above analyst estimates.

Lake cited higher volume-related costs, strategic investments, and “the structural consequence of inflation” as drivers, a warning that may reverberate across the banking sector ahead of Q4 earnings season.

Volatility has ticked higher as traders hedge ahead of the Fed announcement.

The VIX, the market’s fear gauge, has climbed as demand for downside protection rises. Meanwhile, rate-sensitive sectors like utilities and consumer staples are bid, reflecting safe-haven positioning.

But the broader mood is cautious rather than panicked; this is classic consolidation before a major policy event.

Why labour market softness may give cover for a cut?

The October JOLTS report, released Tuesday, delivered mixed signals that complicate the Fed’s inflation-versus-growth juggling act.

Job openings held steady at 7.7 million, but hires plunged to 5.1 million, down from elevated levels in prior months.

The quits rate fell to 2.9 million, the lowest since August 2020, signaling that workers are less confident about finding better opportunities.

This combination of falling hires and quits suggests labor market momentum is slowing.

While job openings remain elevated, employers are apparently struggling to fill positions or choosing to hold hiring steady.

That cooling may give the Fed political cover for a rate cut by suggesting the economy needs support.

However, persistent job openings also hint that wage pressure could remain sticky, complicating the inflation picture.

Wednesday’s 2 PM ET announcement and Powell’s press conference will set the tone for year-end trading. If the Fed cuts as expected but sounds hawkish on 2026, expect volatility to spike and growth stocks to stumble.

A dovish surprise could reignite the rally toward 2025 highs. Until then, traders are in a wait-and-see mode.

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Pfizer is rolling the dice again on an oral obesity pill.

The pharmaceutical giant signed an exclusive global license agreement with YaoPharma, a subsidiary of China’s Fosun Pharma.

The deal involves YP05002, an oral small-molecule GLP-1 agonist, with a $150 million upfront payment plus up to $1.935 billion in milestone rewards.

This marks Pfizer’s third serious attempt at cracking the lucrative oral obesity market after two high-profile failures left investors skeptical about the company’s ability to deliver in a space now dominated by Novo Nordisk and Eli Lilly.

What we know about YP05002?

YP05002 is a small-molecule oral GLP-1 receptor agonist currently in Phase 1 development for chronic weight management.

Unlike the injectable blockbusters Wegovy and Ozempic (Novo Nordisk) or Zepbound and Mounjaro (Eli Lilly), this pill promises patient convenience and potentially simpler manufacturing.

Pfizer gains exclusive worldwide rights once YaoPharma completes its ongoing safety trial in Australia. The deal signals Pfizer’s determination to play in an obesity market projected to hit $150 billion by 2030.

YaoPharma will complete the ongoing Phase 1 trial before handing global rights to Pfizer, which plans combination studies with its glucose-dependent insulinotropic polypeptide receptor antagonist PF-07976016 and other pipeline molecules.

The financial structure reflects typical biotech licensing: $150 million up front and tiered milestone payments totaling up to $1.935 billion across development, regulatory, and commercial launches, plus royalties on sales.

The broader bet is that an oral candidate, more convenient than injectables, could eventually capture significant market share.

Looming regulatory ghosts

The oral GLP-1 prize is enormous. Oral semaglutide (Novo Nordisk’s Rybelsus) and forthcoming pills from Eli Lilly are poised to reshape the obesity landscape.

Analysts project that oral GLP-1 therapies could eventually command $50 billion in annual sales by the early 2030s, according to Wall Street estimates.

Yet Pfizer’s track record here is troubling. In April 2025, the company abandoned danuglipron, its lead oral GLP-1 candidate, after a participant experienced potential drug-induced liver injury.

Earlier, in December 2023, Pfizer scrapped the twice-daily formulation of danuglipron due to poor tolerability, with over 50% patient discontinuation rates driven by nausea and vomiting.

Before that, Pfizer discontinued lotiglipron in June 2023 due to similar liver safety signals.

These failures highlight the challenge of small-molecule GLP-1s: delivering efficacy without gastrointestinal or hepatic toxicity that exceeds injectable alternatives.

YaoPharma’s Phase 1 data and safety profile will be crucial. If YP05002 shows clean tolerability, Pfizer could accelerate Phase 2 initiation.

Regulatory commentary from the FDA will matter as the agency’s previous skepticism may shape how aggressively Pfizer can advance this molecule.

Pfizer’s Metsera acquisition, a deal announced for obesity drugs, suggests the company is hedging its bets with multiple programs rather than betting everything on YP05002.

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JPMorgan stock (NYSE: JPM) tanked nearly 5% on Tuesday after the bank’s consumer banking chief warned that 2026 expenses will reach $105 billion.

Wall Street wasn’t pricing in this magnitude of expense, as they are over 4% above market expectations.

Marianne Lake’s comments at the Goldman Sachs Financial Services Conference sent shockwaves through the banking sector, with Citigroup and Bank of America shares also tumbling.

Tuesday’s plunge marks the steepest intraday drop since April and raises some critical questions for investors.

JPMorgan’s 2026 cost shock: What investors heard

JPMorgan cited “volume and growth-related expenses” as the primary driver of expenses next year.

It includes incentive compensation for financial advisors, product marketing, branch construction, and artificial intelligence investments.

It is to be noted that strategic investments and “structural impacts from inflation” rounded out the list.

What stung investors most was the magnitude of the miss. Consensus analyst estimates had pegged 2026 spending at roughly $101.1 billion, already steep.

JPMorgan’s $105 billion projection blew past even the highest Street estimates by $4 billion.

Lake tried to soften the blow by citing bright spots like investment banking fees, which is expected to rise in the low single digits.

Moreover, the market’s revenue is also climbing in the low teens, and credit card account additions are remaining on pace for 10.5 million accounts in 2025.

But these positives were overshadowed by the cost warning and Lake’s comment that the consumer environment remains “somewhat fragile.”

Traders react and analysts weigh in

JPMorgan became the worst performer in the KBW Bank Index, with the stock plunging nearly 5% and high trading volume signaling institutional capitulation.

The contagion spread immediately, with Citigroup and Bank of America both declining over 1% as traders recalibrated expectations for the entire sector’s cost discipline.

The broader concern is margin compression. If JPMorgan can’t grow revenues proportionally to expense growth, return on equity, a key banking metric, could suffer.

The bank’s ROE stands around 15–17% already, and cost inflation threatens to pressure that figure in 2026.​

Some analysts viewed the guidance as a necessary investment in technology and talent to maintain competitive positioning.

Others questioned whether $105 billion in spending signals management has lost grip on cost control.

One analyst flagged that the consumer banking division, which Lake oversees, is the “key driver” of cost growth, raising questions about whether volume gains justify the outlay.

The traders will closely watch the fourth-quarter earnings in January, which are expected to reveal if investment banking and trading momentum is materialising.

The investors will also track JPMorgan’s cost-to-income ratio and efficiency metrics closely as these will determine if spending is generating commensurate revenue growth.

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Global markets opened on Wednesday on a cautious note as investors balanced major corporate developments with heightened macroeconomic uncertainty.

SpaceX’s push toward what could become the largest initial public offering in history, alongside muted trading across Asian markets ahead of the US Federal Reserve’s rate decision, shaped the early-session sentiment.

Additional headlines included Amazon’s expanded investment plans in India and fresh geopolitical comments from US President Donald Trump.

SpaceX IPO could become the largest in market history

SpaceX is accelerating plans for an initial public offering that could raise significantly more than $30 billion, Bloomberg reported, citing people familiar with the matter.

The company is targeting a valuation of about $1.5 trillion — a level that would place it alongside Saudi Aramco’s record-setting 2019 listing, which raised $29 billion.

Management and advisers are preparing for a potential listing in mid-to-late 2026, though the timing could shift to 2027 depending on market conditions.

The IPO momentum is being driven largely by the rapid growth of Starlink, SpaceX’s satellite internet unit, and the continued development of the Starship launch system.

The company expects revenue of around $15 billion in 2025, rising to as much as $24 billion in 2026, with Starlink contributing the bulk of sales.

SpaceX also aims to use part of the IPO proceeds to develop space-based data centers, including chip procurement for those systems.

In its latest secondary share sale, SpaceX set a per-share price of roughly $420, lifting its valuation above $800 billion.

The company is allowing employees to sell about $2 billion in stock, with SpaceX set to repurchase some shares.

Executives see this valuation reset as an important precursor to a public listing.

Asian markets steady as Fed rate cut looms

Asian equities were largely subdued as investors awaited the Federal Reserve’s decision later Wednesday.

Futures markets show an 89% probability of a 25-basis-point cut to the 3.50%–3.75% range, though analysts expect guidance to remain hawkish.

Japan’s Nikkei slipped 0.3% after opening stronger, South Korea’s benchmark was little changed, and Chinese blue-chip stocks fell 0.8% following mixed inflation readings.

Most regional traders kept positions light amid uncertainty over upcoming US economic data, including payrolls and inflation, due later this month.

Silver continued its sharp ascent, hitting a record $61.25 per ounce, more than doubling in value this year due to tightening inventories and rising demand from solar, EV, and data center industries.

Oil prices were steady, while US Treasury yields hovered near 4.18%.

India’s Nifty 50 and Sensex each gained 0.10%.

Amazon to invest over $35B in India

Amazon announced plans to invest more than $35 billion in India by 2030, positioning the country as a key hub for artificial intelligence, cloud services, and deep-tech growth.

The move follows similarly large commitments from Microsoft ($17.5 billion) and Google ($15 billion).

Amazon, which has already invested $40 billion in India, aims to boost exports from Indian sellers to $80 billion by 2030 and create an additional 1 million jobs.

Trump issues warnings on geopolitics and Europe’s energy risks

US President Donald Trump said he would intervene to stop escalating tensions between Cambodia and Thailand, claiming he could halt the conflict with a direct phone call.

In separate remarks, Trump warned that Europe risked “collapse” if leaders fail to address energy and immigration challenges.

He also recounted advising UK Prime Minister Keir Starmer to rely more heavily on domestic energy resources, criticizing wind projects in Scotland and urging development of the North Sea.

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Nintendo’s latest share slump is drawing attention to a wider shift in the tech supply chain, as rising memory costs ripple through gaming hardware.

Shares fell as much as 2.6% on Wednesday, reaching the lowest level since May during intraday, after investors reacted to concerns that expensive components could weigh on profitability.

The pressure reflects a global surge in prices for memory chips, a trend already affecting PC makers and now moving into the console sector.

Bloomberg reports that for Nintendo, this means a more challenging cost environment just as the Switch 2 enters a crucial sales phase during a highly competitive period.

Memory costs rise

Nintendo faces a sharp jump in the cost of key parts used in the Switch 2.

Market intelligence firm TrendForce reported that the 12GB RAM modules required for the console rose 41% in the current quarter.

NAND storage used inside the device became nearly 8% more expensive, and that rise is also influencing the price of add-on storage cards.

These increases matter because the console’s built-in storage is limited, so many players rely on expandable memory to manage large game downloads effectively.

Market value pressure

The company’s share performance reflects these concerns. Nintendo’s stock has dropped in seven of the first eight trading days of December, erasing about $14 billion in market value.

This decline comes as optimism around the Switch 2 cools in the face of higher component costs and a global memory supply shortage.

PC makers such as Dell Technologies Inc. and HP Inc. have already warned that next year could bring price increases due to rising component costs.

The trend points to an industry-wide squeeze rather than an isolated challenge for Nintendo.

Accessory prices drive demand risks

Accessory pricing is becoming another pressure point.

Rising NAND prices have pushed up the cost of high-capacity storage cards, with a 256GB Express SD card now listed at $89.99 on Amazon.

This creates a secondary layer of expense for consumers.

Third-party games from publishers including Electronic Arts Inc. can effectively cost about $20 more once the required storage is factored in, making total spending on the console ecosystem higher than expected.

These shifts may influence purchasing behaviour during a period when demand is sensitive to price changes.

Switch 2 discounts appear early

There are also signs of softer pricing momentum for the console itself. The Switch 2 launched with record-setting early sales, outpacing other gaming systems in launch performance.

But the device appeared in discounted bundles earlier than anticipated.

During Black Friday, a Switch 2 plus Mario Kart World offer circulated online with a $50 reduction, which meant the bundled game was effectively free.

Such discounts close to the holiday season have raised questions about whether sustained demand will extend beyond Nintendo’s core user base.

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The US shale sector is anticipating a new round of M&A-driven consolidation among small- and medium-sized producers. 

This trend is mainly fueled by the desire for increased scale in an increasingly competitive deal-making landscape, Rystad Energy said in its latest report.

For Exploration & Production (E&P) companies aiming for strong business valuations, scale and efficiency are critical drivers, according to the Norway-based energy intelligence company. 

Acquisitions, which reward operators for maintaining high volumes and low costs, are becoming a crucial factor in calculating shareholder value, it said.

Scale and efficiency as critical drivers

Smaller E&P companies face limited options to achieve scale and withstand further industry consolidation. 

Their choices are either to purchase assets divested by larger players or acquire privately held E&P firms. However, neither of these strategies is anticipated to deliver the necessary scale these companies require.

Given the need to move higher within their segment or elevate to a top-tier profile for favorable valuations, Rystad Energy believes that smaller operators will now pursue combinations within their peer group, implying a new wave of a merger of equals.

“This is likely a shift in strategy due to the scarcity of opportunities and an ever-evolving menu of acquisition options. Although smaller E&Ps are the most likely to be snapped up, they are also on a mission to punch above their weight by acquiring what’s left of the M&A waves experienced over the last two years, which could include non-core assets that ExxonMobil, Diamondback, Occidental, and ConocoPhillips are looking to shed,” Atul Raina, vice president, oil and gas M&A, Rystad Energy, said in the report. 

The majority of available market assets, typically valued between $500 million and $1 billion, present limited inorganic growth opportunities for potential buyers. 

This is primarily due to their lack of both high-quality inventory and significant production value, Raina said. 

Neither this option nor private acquisitions would be able to truly move the needle for smaller buyers. 

Limited options

According to Rystad Energy, Permian Resources is positioned to be either an acquisition target or an active acquirer in the current market environment. 

Other companies, including Matador, HighPeak, and Chord, are also considered strong candidates for future M&A activity.

Coterra Energy, Ovintiv, and Devon Energy are also potential candidates that may emerge as consolidators or continue to be active in upstream M&A, influenced by strategic portfolio positioning and current valuation dynamics.

A potential merger between Coterra and Ovintiv, given their comparable size, natural gas focus, and deep inventory, could offer strategic advantages. 

Both companies pursue a multi-basin strategy, with Coterra operating across the Permian, Marcellus, and Anadarko regions, and Ovintiv following a similar model. 

However, despite the merits of this near-equals combination, certain key challenges still need to be addressed.

Key candidates and shifting dynamics

These players face two possible directions: they can pursue inorganic growth by acquiring assets from larger firms, or they can merge with or take over an operator of comparable or smaller size, Rystad Energy said.

In contrast to the initial phase of consolidation, where buyers aimed for increased scale in their primary operating areas, recent acquisitions by Crescent and SM prioritise scale even without substantial operational synergy.

Having missed the initial surge, these E&P companies are now engaged in mergers at significantly lower multiples compared to those seen over the past two years. 

Given the diverse nature of their operations, the long-term value of these mergers hinges crucially on their ability to achieve G&A synergies and leverage increased scale to reduce their cost of capital, Rystad said.

It remains to be seen whether the market values absolute scale and scale with tangible operational synergies differently.

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